1. By: M.Nadeem Akhtar1 CHAPTER 05. ETHICAL IMPLICATIONS OF INFORMATION TECHNOLOGY

2. By: M.Nadeem Akhtar2 PRESCRIPTIVE VERSUS DESCRIPTIVE COVERAGE  Simply describing MIS may not be enough when discussing the moral and ethical dimensions of MIS  Business persons in general, and information specialists in particular, have definite responsibilities in terms of performing within ethical, moral, and legal constraints

3. By: M.Nadeem Akhtar3 MORALS, ETHICS, AND LAWS What are Morals?  Morals are traditions of belief about right and wrong conduct (Behavior).  Morals are social institution with a history and a list of rules.  Doing what is morally right” is the bedrock/basic Principal of our social behavior.  We begin to learn the rules of moral Behavior as children: “Don’t Pull your sister’s hair”. Always say “Thank you”  As we grow & mature physically and Mentally, we learn the rules that our society expect us to follow.  These rules of conduct are our morals.

4. By: M.Nadeem Akhtar4 What are Ethics?  The word Ethics is derived from the Greek root “Ethos” meaning “Character”.  Ethics is a suite of guiding beliefs, standards, or ideals that pervades (spread throughout) an individual or a group or community of people.  All individuals are accountable to their community for their behavior. Community can exist in such forms as a city, state, nation,or profession.  Unlike Morals, Ethics can vary considerably from one community to another. we see this variability in the computer field in the form of Pirated Software.  In 1994 it was estimated that 35 % of soft wares in use in USA had been pirated. 92% in Japan and 99% in Thailand.

5. By: M.Nadeem Akhtar5 What are Laws?  Laws are formal rules of conduct that a sovereign authority, such as a government, imposes on its subjects or citizens.  Until recently there were very few laws governing computer use.

6. By: M.Nadeem Akhtar6 Data Access Rights and Restrictions  U.S. computer legislation has focused on rights and restrictions related to data access, information privacy, computer crime, and, most recently, software patents (official document granting a right ).  The 1966 Freedom of Information Act gave citizens and organizations the right to access data held by the federal government.  The 1970 Fair Credit Reporting Act dealt with the handling of credit data.  The 1978 Right to Federal Privacy Act limited the federal government’s ability to conduct searches of bank records.  The 1988 Computer Matching and Privacy Act restricted the federal government’s right to match computer files for the purpose of determining eligibility for government programs or identifying debtors.

7. By: M.Nadeem Akhtar7 Computer Crime In 1984 the US Congress passed two new laws that applied specifically to computer crime:  The Small Business Computer Security and Education Act established the Small Business Computer Security and Education Advisory Council, which advises Congress on matters relating to computer crime against small businesses.  The Counterfeit Access Device and Computer Fraud and Abuse Act makes it a federal felony (Crime or Serious violent) for someone to gain unauthorized access to information related to national defense or foreign relations.

8. By: M.Nadeem Akhtar8 Software Patents (Proprietary)  In July 1998, in the State Street Decision, the US Court of Appeals affirmed that a business process could be patented  In April 2001, the U.S. Congress introduced a bill requiring a determination of the significance of the patent and whether it is appropriate for use with computer technology.  In this fashion, the U.S. federal government has gradually established a legal framework for computer use.  As with ethics, however, the computer laws can vary considerably from one country to the next

9. By: M.Nadeem Akhtar9 PUTTING MORALS, ETHICS, AND LAWS IN PERSPECTIVE.  Because they are written down, laws are the easiest to interpret.  Ethics, on the other hand, are not clearly defined and not even agreed on by all members of society.

10. By: M.Nadeem Akhtar10 NEED FOR AN ETHICS CULTURE  Top-level managers lead by example: if the firm is to be ethical, then top management must be ethical in everything that it does and says  This is known as an ethics culture  The task of top-level management is to see that its concept of ethics permeates / penetrate the organization, filtering down through the ranks to touch every employee  This can be achieved through a corporate credo/ principals, ethics programs, and tailored corporate codes (Figure 5.1)  Fig. 5.2 shows Security Pacific Corp.’s corporate credo

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12. By: M.Nadeem Akhtar12 Corporate Credo.  A corporate credo is a brief statement of values that the firm seeks to uphold.  The purpose of the credo is to inform persons and organizations, both inside and outside the firm, of the firm’s ethical values.  An example of Corporate Credo is Security Pacific Corporation, a Los Angles –Based Bank. Their management recognized that its business was built on commitments, both internal and external.

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14. By: M.Nadeem Akhtar14 Ethics Programs  An ethics program is a system of multiple activities designed to provide employees with direction in carrying out the corporate credo.  A typical activity is the orientation session that is held for new employees, during session considerable attention is paid to the subject of ethics.  Another example of Ethics Programs is an ethics audit, an internal auditor meets with a manager in a several-hour session for the purpose of learning how the manager’s unit is carrying out the corporate credo.  For Example an Auditor might ask a sales Manager, “Have there been any instances where we have lost business because we do not give gifts to purchasing agents? ”

15. By: M.Nadeem Akhtar15 Tailored Corporate Codes Many firms have devised/ carefully planed their own corporate code of ethics that may be adaptations of codes for a particular industry or profession

16. By: M.Nadeem Akhtar16 WHAT IS COMPUTER ETHICS?  Computer ethics consists of two main activities: –The analysis of the nature and social impact of computer technology. –Formulation and justification of policies for the ethical use of such technology.  The CIO must: 1.Be alert to the effects that the computer is having on society. 2.Formulate policies to ensure that the technology is used throughout the firm in the right way.

17. By: M.Nadeem Akhtar17 Reasons for the Importance of Computer Ethics  James Moor believes there are 3 main reasons for the high level of interest in computer ethics: 1.Logical Malleability: The computer performs exactly as instructed, so if it’s used for an unethical activity the computer is not the culprit/guilty. 2. The Transformation Factor: computers can drastically change the way we do things. e.g. E-Mail is not simply like Telephone Call, it provides entirely new way of communication. Manager can use Video Conferencing to conduct meeting instead of gathering people physically. 3. The Invisibility Factor: Computer’s Internal operations are hidden from view. Invisibility of internal operations provides the opportunity for invisible programming values, invisible complex calculations.

18. By: M.Nadeem Akhtar18 Reasons for the Importance of Computer Ethics Society is therefore, very concerned about computer- - How it can be programmed to do practically things. - How it is changing many of ways we do things, and the fact that what it does is basically invisible. - Society expects business to be guided by computer ethics.

19. By: M.Nadeem Akhtar19 Social Rights and the Computer (Rights to information)  Mason coined the acronym PAPA (privacy, accuracy, property, and accessibility) to represent society’s four basic rights in terms of information  Mason felt that “the right to be left alone” is being threatened by two forces: 1.the increasing ability of the computer to be used for surveillance. 2.the increasing value of information in decision making  For example, Mason says decision makers place such a high value on information that they will often be willing to enter someone’s privacy to get it.

20. By: M.Nadeem Akhtar20 Other Rights to Information.  Right to Accuracy: the computer is given a credit for making possible a level of accuracy that is unachievable in non-computer systems. Potential is certainly there but is not always reached. some computer-based systems contain more errors that would be tolerated in manual systems  Right to Property: copyright and patent laws provide some degree of protection.  Right to Access: much information has been converted to commercial databases, making it less accessible to the public but before this information was available in printed form stored in libraries.

21. By: M.Nadeem Akhtar21 ACHIEVING ETHICS IN INFORMATION TECHNOLOGY  Companies can get assistance in the form of ethics codes and ethics educational programs to provide the foundation for their culture.  The ethics codes can be used as tailored to the firm.  Educational programs can assist in developing a corporate credo and in putting ethics programs.

22. By: M.Nadeem Akhtar22 Code of Ethics and Professional Conduct  The current form of the ACM ( Association for Computing Machinery), code of ethics was adopted in 1992 and consists of 24 "imperatives" that are statements of personal responsibility  The code is subdivided into four parts (Figure 10.6): –general moral imperatives; –more specific professional responsibilities; –organizational leadership responsibilities; and –Compliance/ obedience with the code.

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24. By: M.Nadeem Akhtar24 Compliance with the Code  Table 10.1 illustrates five main dimensions of the ethics of computer work (moral, legal, professional performance, social responsibility, and internal support) as addressed by the three main sections of the code  Table 10.2 shows the focus of the sections on three main areas of responsibility  Formal educational programs in computer ethics are available from a variety of sources: college courses, professional programs, and private educational programs

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26. By: M.Nadeem Akhtar26 ETHICS AND THE CIO  As of August 11, 2002, CEOs and CFOs are required to sign off on the accuracy of their financial statements  This requirement puts responsibility on the executives also on the corporate information services unit, and the information services units of the business areas to provide the executives with information that is accurate, complete.  IS only one unit in the organizational structure but it is in a key position to have the most influence on satisfying the demands of both government and society for accurate financial reporting

27. By: M.Nadeem Akhtar27 Ethics and the CIO (cont.) The CIO can bring financial reporting up to expectations by following a program that includes the following: –Achieving a higher level of understanding of accounting principles. –Reviewing the information systems that accomplish financial reporting and taking remedial action –Educating the firm's executives on financial systems –Integrating alarms into information systems that alert executives to activities that require attention –Actively participating in the release of financial information to environmental elements –Keeping tight control on money spent for information resources